U.S. sanctions Iranian oil 'shadow fleet' after protest crackdown

The United States escalated its financial pressure on Tehran, announcing sanctions on a network of nine vessels and eight associated companies described as part of Iran's "shadow fleet" for oil transportation.

The Treasury's Accusations

In a statement released on Friday, the U.S. Treasury Department asserted that this network, with connections to India, Oman, and the UAE, has moved Iranian oil and petroleum products worth hundreds of millions of dollars. Treasury Secretary Scott Bessent argued, "Today’s sanctions target a critical component of how Iran generates the funds used to repress its own people," alleging that oil profits support security services and regional proxies over domestic needs.

Context of Recent Unrest

These sanctions are framed as a response to Iran's handling of domestic unrest. The Treasury cited the government's "brutal crackdown on peaceful protesters" and internet shutdowns. Protests initially erupted in Tehran at the Grand Bazaar in late December over the plummeting value of the Iranian rial and have since spread to other urban centers.

International and Regional Reactions

The U.S. State Department stated the action aims to further restrict Iran's "obscure and fraudulent" oil export mechanisms. Meanwhile, Iranian authorities have blamed the United States and Israel for instigating what they call "armed rioters." The report follows complex signals from Washington, where President Donald Trump has both issued threats and offered praise regarding Iran's internal affairs in recent weeks.